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INDUSTRY-DRIVEN SOLUTION TO SKILLS CRISIS IN MANUFACTURING

INDUSTRY-DRIVEN SOLUTION TO SKILLS CRISIS IN MANUFACTURING. Remarks by Leo Reddy Chairman and CEO, Manufacturing Skill Standards Council NACFAM AMLF Conference April 9, Crystal City VA . Skills Gap: Can We Close It?. Permanent Feature of Competitiveness Studies, conferences

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INDUSTRY-DRIVEN SOLUTION TO SKILLS CRISIS IN MANUFACTURING

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  1. INDUSTRY-DRIVEN SOLUTION TO SKILLS CRISIS IN MANUFACTURING Remarks by Leo Reddy Chairman and CEO, Manufacturing Skill Standards Council NACFAM AMLF Conference April 9, Crystal City VA

  2. Skills Gap: Can We Close It? • Permanent Feature of Competitiveness Studies, conferences • Including top billing in NACFAM proposal • Just this year: Harvard Business School, NAM Top Priorities, MAPI/Aspen Institute

  3. Bottom Line • 600,000 job openings - for which manufacturers can not find skilled employees • Source: Deloitte/NAM-MI, 2011

  4. Most Critical Workforce Shortage: Production Workers Deloitte & NAM MI 2011

  5. ROOT CAUSE: DISCONNECT • Deep disconnect between industry demand and education supply • “Education is preparing 80% of students for 20% of the jobs” Source: Harry Moser, President, Re-shoring Initiative

  6. SOLUTION: ALIGN EDUCATION WITH NEEDS OF INDUSRY Elements of industry-driven solution: • Standards: Industry-defined, nationally validated • Instructional materials aligned with standards: courses, textbooks, e-learning, instructor training • Assessments aligned with standards: Industry-formulated test questions, delivered on-line • Credentials: Industry-recognized, nationally portable • Education Reform: Courses aligned with industry standards, students enabled to graduate with both a degree and an industry-recognized certification

  7. BUILDING THOSE ELEMENTS THROUGH PUBLIC-PRIVATE PARTNERSHIPS: A LONG PROCESS • Bush I: Industry standards • Clinton: National Skill Standards Act: - Industry Standards and Certifications - Industry-led “Voluntary Partnerships” (e.g. MSSC for Mfg.) • Bush II: - Standards-based Competencies Models (DOL) - Standards-based Career Pathways (DoED) - Linkage of training funds toindustry- recognized credentials (DOL and DoED)

  8. A LONG PROCESS – CONT’D • Obama: - Strong focus on certification, stackability- President’s June 8, 2011 goal: Credential 500,000 - Mfg. workers in 5 years under NAM System • NAM-MI: - NAM-endorsed Skills Certification System (Founding Partners: ACT, MSSC, NIMS, AWS, SME)- Education reform supported by leading foundations

  9. BREAKING NEWS! ALL BUILDING BLOCKS OF AN INDUSTRY-DRIVEN SOLUTION ARE NOW IN PLACE

  10. WHAT NEXT? NATIONWIDE CAMPAIGN TO ACCELERATE DEPLOYMENT OF INDUSTRY-RECOGNIZED, NATIONALLY PORTABLE CREDENTIALS

  11. WHO? • INDUSTRY: Require certifications; make centerpiece of recruitment policies; communicate to state governments • EDUCATION: Help students secure industry credentials thru for-credit courses • FEDERAL: Link federal workforce training funds to industry-recognized, nationally portable certifications. Pass America Works Act.

  12. WHO PAYS • Regular Education System: Students, Parents, Pell Grants, GI Bill, Tuition Reimbursement • Federal Programs: DOL/ETA, DoED/ OVAE, DoD, VA, NSF/ATE • State Programs: CTE Course emphasis, dual credit HS/CC arrangements, Workforce Investment Boards, incumbent training support programs

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